Corporate Parenting Advantage as a Capability‑Based, Contextually Contingent Alignment Process
Year: 2026
Type: article
Abstract: Corporate parenting advantage is widely viewed as a key source of value creation in multi‑business firms, yet empirical evidence remains limited. This study develops and tests a capability‑based, contextually contingent model of corporate parenting advantage using multi‑level data from 32 parent firms and 96 subsidiaries. Drawing on survey responses from headquarters and subsidiary managers, complemented by archival performance, institutional, and industry indicators, the study examines how parenting capabilities and parenting style-subsidiary fit shape parent-subsidiary relational mechanisms. Multi‑level structural equation modeling shows that both parenting capabilities and style-fit significantly strengthen relational mechanisms, which in turn enhance subsidiary performance, innovation, and portfolio‑level outcomes. Institutional environment, technological dynamism, and portfolio complexity moderate these effects, underscoring the contingent nature of parenting advantage. The findings reframe parenting advantage as a capability‑driven alignment process and contribute to strategic management and international business by integrating parent attributes, relational mechanisms, and contextual moderators into a unified empirical model.
DOI: 10.59857/hddxan88
Author: Alibandila Siwiwaliondo
Institution: University of Zambia
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7140024947
FWCI:
Cites:
Cited by:
Related to: